Deficit amounts to only 80 million Federal budget 2024 closes 2.5 billion francs above budget
A deficit of CHF 80 million instead of the budgeted CHF 2,645 million: for the first time since the Covid pandemic, the Confederation has achieved an almost balanced financial result according to provisional figures.
12.02.2025, 14:07
12.02.2025, 14:11
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- Instead of an expected deficit of CHF 2.6 billion, Switzerland will only record a deficit of CHF 80 million in 2024.
- Coronavirus debt can be reduced for the first time.
- Higher tax revenue (plus CHF 1.2 billion) and lower expenditure, including a postponed SBB capital subsidy, contributed to the improvement in federal finances.
Finance Minister Karin Keller-Sutter reported on the federal finances on Wednesday. The deficit is only CHF 80 million instead of the budgeted CHF 2645 million. This means that part of the coronavirus debt can be reduced for the first time.
There are many reasons why the federal budget is in the red at the end of 2024 instead of a deficit of over CHF 2.6 billion. In Wednesday's press release, the Federal Council lists lower extraordinary expenditure - such as the postponed capital subsidy to SBB - on the one hand. On the other hand, tax revenue was CHF 1.2 billion higher than budgeted.
This is the first time since the coronavirus crisis that the federal government no longer has a deficit in the billions - despite the fact that both revenue (+5.8%) and expenditure (+4%) increased last year. According to the Federal Finance Administration (FFA), the ordinary financial balance amounts to CHF 817 million.
As a deficit of around CHF 500 million would have been permissible due to the economic situation, the structural surplus therefore amounts to CHF 1.3 billion. This amount will be used to reduce coronavirus debt. If the figures for the extraordinary budget are included, the provisional debt level at the end of 2024 is CHF 26.8 billion - CHF 0.4 billion less than a year earlier.
Additional income from commodity profits
The federal government's medium-term financial prospects also look better than before. The updated budget figures show an almost balanced structural financing balance for 2026, as the Federal Council writes. "This means that no additional cuts are likely to be necessary for the 2026 budget." This is due in particular to the extensive, permanent spending cuts of recent years.
On the revenue side, a special effect will temporarily lead to higher revenue in the next three years, according to the statement. It is estimated that income tax revenue will increase by a total of around CHF 1.6 billion during this period. The reason for this is that energy and commodity trading companies from the canton of Geneva have recorded exceptionally high profits due to the rise in commodity prices.
According to the Federal Council, this additional income should help to finance the higher growth in expenditure decided by Parliament, particularly for the armed forces, as well as the compulsory contribution to Horizon Europe. At the same time, the Federal Council warns against exaggerated expectations: "This increase in profits is a one-off, temporary phenomenon and therefore not sustainable."
In order to keep the federal finances in balance in the long term, the Federal Council believes that the relief package submitted for consultation at the end of January is necessary. Without this, deficits of around CHF 2 billion per year are threatened in 2027 and 2028.
